Economic consultancy

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Would you like to work in a specialist consulting area? Have you got an ability and enthusiasm for applying economic principles to real-life situations? Have you got a creative but enquiring mind that can spot critical links between specific economic data? If so, economic consultancy could be for you.

As a professional economist, you would use your knowledge of economics and finance to provide your clients with advice and analysis on a project-by-project or ongoing basis.  Your role would involve applying economic theory, quantitative analysis and analytical thinking to generate expert advice and recommendations to both private and public clients.

As a professional economist, you would use your knowledge of economics and finance to provide your clients with advice and analysis on a project-by-project or ongoing basis.

The range of employers of economic consultants can include: economic research bodies, economic consultancy practices (including the consulting segments of some of the large chartered accountancy/financial services firms), broader management and strategic consultancies, the Government Economic Service (GES), commercial banks, the Bank of England, investment banks, private equity and other specialist investment services, the International Monetary Fund (and other international bodies), NGOs, local authorities, Learning and Skills Council offices and finally management services within a range of large, often international companies. The environment of an economic consultant can vary quite markedly, and as a result the areas of economics that a particular organisation may be interested in will vary too. It is important to note that the majority of employers have a small number of staff devoted to economic consultancy work, or alternatively are relatively small organisations focused purely on economic consultancy.

Pure economic consultancies typically range from approximately five to 120 staff. As a new graduate in this area, you can expect to work in a relatively small team or small organisation. A number of American economic consultancies are beginning to set up offices in the UK. In addition, many academic economists work on a contract or affiliate basis as part-time or self-employed economic consultants. The market is difficult to define, and has a number of overlaps with other disciplines including finance, accountancy, strategy and management consulting. The number of organisations offering solely economic consultancy services is estimated at around 50. In addition, the location does not have to be London. This Career Briefing addresses those organisations that focus purely on providing economic consultancy services, and as a result tend to be the smaller organisations.

What types of jobs are there?

The range of jobs in the sector tends to vary depending on three areas: 1) the type of organisation you work in; 2) that organisation’s client focus and work specialisms; and 3) the area of economics you wish to specialise in. The range of specialisms you can expect from economic consultancy organisations can include: economic modelling and forecasting, environmental economics, regulatory issues, finance economics, economic impact and local economic development work, labour market economics, government policy evaluation, macroeconomic modelling, international trade, productivity comparisons between companies/industries, education, skill and training studies, research into small and medium-sized enterprises, competition economics, industrial organisation theory, taxation (corporate and product) and valuation analysis.

Graduate job titles may vary to reflect specialisms, and can include Consultant, Economist, Researcher or Research Analyst, to name but a few. The initial work graduates may be involved in will vary, but some likely tasks include: data collection and manipulation, theory research, drafting and presenting reports, leading client workshops, assisting senior economists with projects, handling client contacts (phone, email, meetings), analysis of economic ‘events’, interviewing, practical background research, economic, statistical and data analysis, economic and computer modelling, and developing spreadsheet models.

The role of an economic consultant will change over time, and depends on the ability and potential of the individual. The sort of changes to expect are: an initial role in managing yourself involving substantial data analysis, increasing responsibility for drafting reports and managing clients after approximately one year to eighteen months, followed by taking on staff management and ultimately managing the business you are working for, including marketing your organisation’s services and bringing in new business.

Economic consultants can leave consultancies for a range of destinations, including: PhD programmes; other small consultancies; large companies (often as chief economists); bigger consultancies; the Government; the larger chartered accountancy firms; the European Commission; the European Central Bank; investment fund management; the OECD; the IMF and other international organisations.
Compared with many ‘City’ jobs, economic consultancy is not the most highly paid though the hours tend to be better. Starting salaries range from £25k to £35k per annum, with some economic research bodies and government departments paying less. Salaries can vary substantially between different departments and economists working in banks and investment companies can command higher salaries. The higher points in the range are normally paid to those with postgraduate qualifications and for some positions a masters or PhD may be required, for example ‘Competition Economics’. Within three years you can expect a salary ranging from £35k to £50k, but this is difficult to predict, as in most economic consultancies promotion is mainly based on ability rather than length of service. After five years you could be on a salary of around £60k to £70k - if you have performed well. Most organisations don’t publish their salary details on their vacancy advertisements, so you should treat these figures as a rough guide only.

What skills do I need?

Regardless of the area of economic consultancy you are interested in, the skills and attributes required are very similar. Those skills associated with commercial knowledge and client handling may vary, depending on whether the organisation is commercially focused or not. General skills required include:
•    An excellent grasp of economic theory and a clear understanding of business.
•    Sound research and analytical skills; interpretation and analysis of often complex numerical data; IT skills, such as spreadsheet modelling.
•    Strong written and verbal communication skills.
•    Interpersonal skills, team-working, self-confidence and the ability to extract information.
•    Sound judgement, a healthy scepticism and common sense.
•    The ability to communicate well with clients, who are often not knowledgeable about economics, is increasingly vital.

What are the entry points?    

The majority of employers expect applicants to have a good undergraduate degree [2-1/1st] in economics or a related subject, and many require a Masters [depending on area]. Some economic consultancies may accept graduates from other numerate disciplines, such as mathematics, statistics, social policy or engineering, but these positions are more difficult to find and applicants should be able to demonstrate a keen interest in economics and finance.

Gaining a postgraduate qualification is likely to improve your employability considerably. Indeed the majority of vacancies now ask that only those with postgraduate qualifications apply. It is important, however, that considerable thought is put into deciding which area of economics you are going to study at postgraduate level, since your choice may well limit you, if you want to focus on a different area of economics afterwards. Conversely, it may help you direct your application towards an organisation that specialises in your chosen area. Most organisations focus either on micro- or macro-economic theory. Subjects preferred by economic consultancies include economics, econometrics, and finance. It is worth checking with specific consultancies before opting for a particular subject. Some consultancies often prefer students who have studied for a Master’s qualification rather than a DPhil, but many of them provide support for studying a DPhil later on in your career, since this qualification is seen as important to your reputation as an economist, and to the reputation of the consultancy in the longer term. Other training offered at a later stage can include finance and accountancy training, language training, support to study for law diplomas, and specific economic modelling training.

How do I get experience?

Previous economic consultancy experience is valuable, but not essential, and indeed can be quite difficult to gain. Experience in another type of consultancy, or in a commercial or financial environment, is seen as beneficial, particularly if it has involved research, analytical and numerate work. If you are keen to gain economic consultancy experience, then you will need to be creative in your search. A small number of current and archived vacancies may be found on CareerConnect, though using your network of academic tutors or supervisors may be more productive, in conjunction with sending a number of carefully-tailored, speculative applications to the economic consultancies that specialise in the area of economics in which you are interested in working.

The Government Economic Service (GES) employs economics students in provisional positions lasting up to one year (Sandwich Student Placements), the expectation being that they will apply for a permanent position during that year. The student scheme for 2011/12 is likely to open for applications on Monday 11 October, the latest closing date is Friday 22 October, however, they will close earlier if they receive a sufficient number of applications. Therefore it is in your interest to get your application in early. Not all vacancies are in London.

The GES also run Summer Student Placements for economics students, these generally last between six and 12 weeks. The scheme for 2012 is likely to open for applications in December 2011. For full information on eligibility criteria please visit their website.

How do I get a job?

To get an economic consultancy position, there are some key sources of information you can use. A select few consultancies will run milkround presentations. However, as outlined above, to reach smaller economic consultancies you will need to be more proactive.

Many organisations approach professors/tutors/supervisors directly to let them know about vacancies, so keep them informed of your interests. You may also want to consider asking your tutor or supervisor to recommend you to an economic consultancy, or to suggest to you the right consultancies for you to target.

Some, but not all, economic consultancies have graduate recruitment literature available at the Careers Service. In addition you should look in the Guardian on Tuesdays for vacancies with an education focus, and on Wednesdays for those with a development or health focus. Also look at the Financial Times and The Economist. Selection procedures normally combine interviews and technical exercises. Be prepared to be closely questioned on your economic and commercial knowledge. You should also be prepared to sit numeracy and verbal reasoning tests.

You can prepare for interviews by reading any economic journals produced by the organisation you are applying to, and by reading The Economist, the Financial Times and other specialist journals. [You should also try and understand a bit about key competitors and the particular practice areas your company specialises in – reading CVs/bios from websites can be useful]

Applications should normally be made by CV and cover letter, but do check with any graduate recruitment literature produced by the company first. In particular, the economic consultancy arms of some of the large chartered accountancy firms normally have their own application forms.

EMPLOYMENT RIGHTS AND EQUALITY

For information about your employment rights, including the National Minimum Wage, please visit: http://www.direct.gov.uk/en/Employment/Employees/index.htm  and http://www.direct.gov.uk/en/Governmentcitizensandrights/Yourrightsandresponsibilities/DG_10014458

Postgraduate students

Economic consultancy is quickly becoming the preserve of postgraduate entry. The level of econometrics required for some positions often means that a Master’s qualification is indicated. Whatever your particular circumstances, or career aspirations, the careers advisers here are well equipped to discuss resources relevant to your needs, and how best to find jobs and market yourself effectively.

International students

There are frequent changes to the rules affecting international students and recent graduates wishing to work in the UK. Until April 2012 the Tier 1 Post-Study Work category of the Points-Based System to work in the UK will be in operation. Under this scheme, international students can apply for leave to live and work in the UK for a maximum period of two years, provided they meet the eligibility criteria. In April 2012 this will be replaced with a new route in Tier 2 which will require a job offer, a minimum salary and students will need to apply within the UK. It is recommended that, for the most up-to-date information, you check the UKCISA: UK Council for International Student Affairs website which offers independent information and advice about immigration, finance and working in the UK, and also the UK Border Agency website. Please refer to our Diversity files at the Careers Service for more information, or consult the University's Student Information and Advisory Service.

Relevant events

For full details of events, check the What’s On section of our website and log in to CareerConnect.

There are presentations during Michaelmas Term from a number of specialist economic consultancies and the economic and business consultancy arms of chartered accountancy/financial services organisations.
•    Careers Boot Camp, Tuesday 4 & Wednesday 5 October, All day, Careers Service
•    How to Prepare for Psychometric Tests, Monday 10 October, 14.15, Careers Service
•    Thinking about Investment Banking or Management Consultancy, Tuesday 11 October, 14.15, Exam Schools
•    CVs for Investment Banking & Management Consultancy, Tuesday 18 October, 13.00, Exam Schools
•    The Finance Sector Fair, Thursday 20 and Friday 21 October in Oxford Town Hall, 14.30 – 18.00
•    Also running short employer panel discussions before the fair:
Thursday 14.00-14.30, Demystifying the Finance Sector
Friday 14.00-14.30, Finance for Arts Students
•    Careers in Economics, Wednesday 9 November, Department of Economics, Manor Road, 15.30-18.00. The event will take the form of a networking fair and we are aiming for a broad range of organisations including international institutions, UK public sector entities, think tanks, economic consultancies, financial services, strategy consultancies and industry.

Resources available

OXFORD CAREERS NETWORK (OCN)

The OCN is a database of Oxford alumni who are willing to be contacted about their career. Read their case studies for behind-the-scenes insights into an organisation or occupation, and contact volunteers for more advice and information via CareerConnect.

ONLINE INTERVIEW FEEDBACK

The careers website includes access to online interview feedback forms completed by Oxford students; please see the link below to access.

https://www.careers.ox.ac.uk/auth/interview_feedback/

The Careers Service also has an extensive resource centre at 56 Banbury Road, Oxford, where you can drop in to browse during opening hours (visit our website for details).

FILES
•    Occupational Files: O Research and Management Services and O1 Management Consultancy
•    Employer Files:
o    Economic Consultants
o    Civil Service: Fast Stream Specialist
o    Civil Service: Government Departments and Agencies

BOOKS
•    The Undercover Economist, Tim Harford

JOURNALS
•    The Economist, weekly

PODCASTS
The Careers Service has recorded a series of podcasts.  Subscribe in iTunes or find a full list here: http://podcasts.ox.ac.uk/#career-unit

Useful websites

In addition to the websites listed below, all companies and organisations mentioned throughout this Briefing can be found via a web search.

GENERAL VACANCIES AND OCCUPATION INFORMATION
•    www.prospects.ac.uk
•    www.targetjobs.co.uk
•    www.jobs.ac.uk
•    www.economist.com
•    http://jobs.guardian.co.uk
•    www.jobs.telegraph.co.uk
•    http://jobs.thetimes.co.uk
•    www.thejobcrowd.com
•    www.mckinseyquarterly.com
•    www.econ-jobs.com
•    http://economistjobs.com
•    www.thesupplycurve.com  Recruitment agency

SOCIETIES AND INSTITUTIONS
•    www.sbe.co.uk  Society of Business Economists
•    www.ges.gov.uk  Government Economic Service
•    www.icea.co.uk  International Consulting Economists’ Association
•    www.ifs.org.uk  Institute for Fiscal Studies
•    www.res.org.uk  Royal Economics Society
•    www.rfe.org  American Economic Association

Social media

Twitter is a quick way to develop your knowledge about the sector and find opportunities.  You can read and search it without an account.  We’ve made 20 handy lists, so that you can see at a glance information tailored to your interests.
If you’d like to join Twitter, remember to ‘follow’ us (www.twitter.com/OxfordCareers) as well as your chosen lists to keep receiving useful information to help your career.

See our Finance & Management Consultancy list at: http://twitter.com/#!/OxfordCareers/finance-mancon 

See our Public and Policy list at: http://twitter.com/#!/OxfordCareers/public-and-policy 

RSSEconomist


    Page last edited: 24 October 2011

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